Enter your investment amount, expected return, and two expense ratios to see how fees compound over decades. Even a small difference in expense ratios can cost tens of thousands of dollars.
| 0.03% (VTI/VOO) | $215,589 | $464,890 | $1,002,513 |
| 0.20% | $213,344 | $455,257 | $971,559 |
| 0.50% | $209,378 | $438,577 | $919,268 |
| 1.00% | $203,040 | $412,285 | $836,736 |
| Fee drag (0.03% vs 1%) | $12,549 | $52,605 | $165,777 |
You can't control market returns, interest rates, or the economy. But you can control what you pay in fees. Research consistently shows that low-cost index funds outperform the majority of actively managed funds over 10+ year periods. The primary reason is fees: an actively managed fund charging 1% needs to beat the market by 1% every year just to match an index fund. Over 30 years, even a 0.50% fee difference can cost you 15-20% of your potential wealth. The simplest upgrade most investors can make is switching from high-fee funds to low-cost index ETFs.
